Lean Transformation

Understanding
d di the
h Hidden
idd
Rules of Engagement
April 2010
Jim Luckman

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. Lean Enterprise Institute and leaper images are registered trademarks of Lean Enterprise Institute, Inc.
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 About the Speaker
p
Jim Luckman
LEI facultyy member;; facilitator of
Transformational Leadership, an experiential
program for lean leaders
Past president & CEO of iPower Technologies
Former plant manager & director of a research
and development center at Delphi Automotive
Leadership coach & advisor to businesses
making company-wide lean transformations
Development
e e op e t tea
team member
e be for o LEIss Mapping
app g to
See: A Value-Stream Improvement Kit for the
Office and Services

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 3

 Purpose
p of the Webinar
Understand the hidden drivers of our culture
Learn how to look for cultural problems to solve in
your organizations
Understand a model to create a problem solving
culture

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 Lean Transformations
E
Experiences
i

Transformations have not lived up to expectations

Not sustainable Confusion
False starts Frustration
Long implementation cycles Anxiety
Poor results
l
What is happening?
Delegate the work
Continue with the actions within the existing system
Expect
E t quick
i k results
lt mostly
tl costt reduction
d ti
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What is Lean? A
C
P
D
A New Paradigm
Good Thinking Good Products
AP
CD Strategies
E
Executive
ti
Business Objectives
AP AP
CD
Financial Performance
CD

Goals
Manager AP AP AP AP Ops/Project Plans
CD CD CD CD
Budgets

Action Plans
Supervisor AP AP AP AP AP AP
Production Schedules
CD CD CD CD CD CD
Team Leader Targets

AP AP AP AP AP AP AP Assignments
Team CD CD CD CD CD CD CD Rates/Due
AP AP AP AP AP AP AP AP Dates
CD CD CD CD CD CD CD CD St d d
Standards

Problem Solving by Level

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved.
 PDCA Management
Firmly Grasp The
Current Condition

Adjust as Develop a
required or yp
Hypothesis
standardize

Act Plan

Check Do

Measure Implement
the results the Plan

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 7

 Question

What is limiting your

lean transformation
effort?

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 8

 Culture and Systems

We need a different
way of thinking about
problem solving when
it comes to changing
the culture

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 Limits to Growth

Performance
Improvement
from Lean
Effort

Time

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 Systems Model for
Lean Transformation
Unquestioned
Assumptions

ValueStreams

P tt
Patterns

Problems
Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 11
 Two Paradigms

Blanket Solutions Thinking Problem Solving through

rapid small experiments

Solution

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 Question

Whatt are the

Wh th
Unquestioned Assumptions
that drive each Paradigm:

Blanket Solutions
Problem
P bl Solving
S l i ?

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 Definition of Culture
b Edgar
by Ed S
Schein
h i
AA pattern of assumptions,
assumptions invented,
invented
discovered or developed by a given group,
as it learns to cope with the problem of
external adaptation and internal
integration that has worked well enough
integration,
to be considered valid and be taught to
new members
members, as the correct way to
perceive, think and feel

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved.

 Systems View of Problem Solving

Unquestioned
Assumptions
Attitudes,
Attitudes
Results from
Values,
Value Streams
Norms

Culture:
The Way of Life for
the Organization
Value Stream Behavioral
Performance Intentions

Actual
Behaviors
B h i

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 15

 Unquestioned Assumptions
That Drive Complexity
Blanket solutions
Use of CI specialists to solve Focused on the final
organizational problems result, not on the
Not building capability of others Result-
oriented problem
bl solving
l i
Missing opportunities for process
learning

Fragmented
Knowers
Thinking

Failure is not allowed Fragmented actions

Employees feel the need Lack of organization
to justify their actions wide strategy
Someone else caused the Silos
Command &
problem Defensive
Control
Rationalization of data

p
Metrics and status reports are
the primary management tool
Deferring to the person of
Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved.
highest rank
16
 Question

How is your Lean Transforming Going?

Which of these unquestioned

assumptions best describe your
companys culture?

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 17

 Unquestioned Assumptions that
Thinking That Drives Complexity
Drive Continuous Improvement
Lets Identify the problem
and solve it together Process-
Process Focused on the means
oriented
oriented to achieve
h great results
l

Learners
Learner Systems
Systems
thinking
Thinking

Processes and people

are aligned to achieve
organizational goals

Leader
Leader as
as a
Create an environment Engaging
Internalize
teacher
Teacher
where its OK to fail

Go See
Mentor people to
develop problem solvers
Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 18
 Question

How is your Lean Transforming Going?

What can you do to encourage a

shift in thinking committed to
driving continuous improvement?

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 19

 What is Lean?

The key to success is to have a production

system that highlights problems and a
human system that produces people who
are able and willing to identify and solve
them
them.

From Toyota Culture by Jeffry Liker & Michael Hoseus

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved.

 The Systemic Approach to
Culture Change
Solve value-stream
value stream
Learn the Art of problems from within
Problem Solving and expose and
remove culture
lt b
barriers
i
Problem Solving and
Learning
i Culture
C l

Leaders learn to create

Grow the learning
the environment for
across the organization
problem solving

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 21

 Creating
g
a Plan
for
Change
and
Experimentation

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 PDCA Management
Firmly Grasp The
Current Condition

Adjust as Develop a
required or yp
Hypothesis
standardize

Act Plan

Check Do

Measure Implement
the results the Plan

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 23

 A3 Thinking
g
A3 Sheet

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 Practice the Change
Process
Oriented

Result-
oriented

Systems
Learner
Knowers
Fragmented
Thinking
Thinking

Command &
Defensive
Control

Leader as
Internalize
Teacher

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 Thank
y
you!!

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 26

 2 day
simulation for
developing lean
l d
leadership
hi skills
kill
Ch k lean.org
Check l for
f details
d il
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 Next Steps
Transformational Leadership training at lean.org,
click Education

Visit the Webinar Library and other free resources at

lean org
lean.org

First annual Lean Healthcare Transformation Summit,

J
June 9
9-10,
10 OOrlando
l d

Workshopsp for lean in healthcare,, administrative,, and

manufacturing processes
Seattle, May 11-13
Indianapolis June 22-24
Indianapolis,

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 Questions
andd
Answers

Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 29